Page 1 of 1
1) Suppose there are three firms, their information are as following: Company Beta A 1.3 B 1.00 C 0.8 a. How do you inte
Posted: Sun Jun 05, 2022 6:54 am
by answerhappygod
- 1 Suppose There Are Three Firms Their Information Are As Following Company Beta A 1 3 B 1 00 C 0 8 A How Do You Inte 1 (31.62 KiB) Viewed 52 times
1) Suppose there are three firms, their information are as following:
Company Beta A 1.3 B 1.00 C 0.8 a. How do you interpret these betas? (3 marks) b. Is it reasonable to assume that the expected return on firm C is less than that on firm A's shares? (3marks) c. Given that firm B has a Beta of 1.00, one can mimic the performance of the stock market as a whole by buying only these shares. Do you agree with this
statement? (4 marks)